The present method of paying for healthcare expenses partially covered by medical insurance is cumbersome. This is especially true for a consumer wishing to pay for healthcare expenses using pre-tax funds deducted from a flex spending account or health reimbursement arrangement. The healthcare provider must submit a claim for the part of the expense paid for by insurance and charge the customer for the remainder owed (the co-payment). If reimbursement is desired, the customer must save the receipt and submit it to a third party administrator to receive reimbursement, usually with a significant delay. Although attempts have been made to streamline the process, significant inefficiencies remain.
U.S. Pat. No. 6,208,973 discloses a method and apparatus for payment of healthcare expenses. This invention includes substantially real-time claim adjudication such that the consumer is given the amount of their co-payment at the point of service. The consumer then pays using conventional means (cash, credit card, or check, for example). If the consumer wants to use pre-tax dollars from a flex spending account, he must pay out-of-pocket and save the receipts to be reimbursed.
U.S. patent application Ser. No. 09/812,639 (Levine) discloses a method of payment for healthcare expenses wherein a credit card is issued to a customer. The credit card is used to pay for healthcare expenses incurred from a list of approved providers. The invention ensures that the providers receive prompt payment, allowing them to reduce their prices for the consumers who practice the invention. The consumer must then pay the credit card issuer after being billed. As with the above-described invention, if the consumer wants to use pre-tax dollars from a flex spending account, she must pay out-of-pocket and save the receipts to be reimbursed.
The respective websites for Evolution Benefits and Metavante Heathcare Payment Solutions both disclose flex spending account cards. These cards allow a customer to spend money directly from a flex spending account, rather than pay out-of-pocket and seek reimbursement later. However, the system disclosed by Metavante Heathcare Payment Solutions still requires the customer to save the receipts to verify eligibility of the expenses. Further, the account cards only allow spending from the customer's flex spending account. If the customer runs out of money in the flex spending account, she will be forced to pay out-of-pocket, or provide other payment means.
Clearly, then, there is a longfelt need for a method and apparatus to coordinate the payment of healthcare expenses that reduces the costs of the customer, provider, and third party administrator, especially in the case of pre-tax funds being used for healthcare expenses.